CSCP Supplier Relationship Management 2

Question 1

What is the purpose of a 'supplier development' program?

Accepted Answer

To systematically improve a supplier's capabilities, quality, and performance through joint investment and training

Answer

Supplier development involves the buying company actively helping strategic suppliers improve their processes, quality systems, or capabilities to meet higher standards.

Question 2

In negotiation strategy, 'BATNA' stands for:

Accepted Answer

Best Alternative To a Negotiated Agreement

Answer

BATNA is your walk-away alternative — the better your BATNA, the stronger your negotiating position because you are less dependent on this particular deal.

Question 3

Which payment term represents the best opportunity for a buyer to improve working capital?

Accepted Answer

Net 90 (payment due in 90 days)

Answer

Net 90 extends the payment period, allowing the buyer to hold cash longer and improve working capital and cash flow.

Question 4

What does 'early supplier involvement' (ESI) in new product development achieve?

Accepted Answer

Incorporating supplier expertise during design to improve manufacturability, reduce costs, and shorten development cycles

Answer

ESI leverages supplier knowledge early in product design to catch problems before they are 'baked in,' reducing engineering changes and time to market.

Question 5

A 'preferred supplier' designation typically means:

Accepted Answer

The supplier meets all qualification criteria, receives first consideration for new business, and may get favorable terms

Answer

Preferred supplier status rewards high-performing suppliers with priority access to new business opportunities and a closer collaborative relationship.

CSCP - Certified Supply Chain Professional Practice Test

CSCP - Certified Supply Chain Professional Practice Test

CSCP Supplier Relationship Management 2